Kea

Thanks for sharing these instructions. I haven't filed an extension this year, yet. Now I won't have to panic at the last minute!

Agreed!

I did also notice that there were 2 new icons in my task manager - MultiScreen & Samsung Panal Manager. I exited both of those & ATX started working again!!! So I went into msconfig & unchecked them from the startup list. (I generally try to keep the startup list as small as practical.) I knew the areas to check, but was worried about "tinkering" this time of year. So, just a heads up - ATX doesn't seem to like MultiScreen and / or Samsung Panal Manager. Maybe after 4/18 I see which one is the problem. Thanks for all the suggestions. And I'll know not to worry too much about restore points, if I ever need them.

Thanks for the update, KC. I know they changed the limit to file an estate tax to $5 million. But did they change the rules on no general step up basis to date of death? For people dieing in 2010 or later, there was no basis step-up, but there was an exclusion of over $1 million. I've heard the discussions about the $5 million limit, but haven't heard about the step-up. I haven't looked too closely, because my clients don't tend to have that high of net worth. Thanks.

I thought about using the restore point, but I'm always afraid I'll lose data. Can that happen, or am I just paranoid? I've never actually used it, and I'm nervous about trying it this close to April!

I don't think ATX would take my call since I'm with TRX. I bought a new monitor yesterday and all seemed fine. But then I tried to open 2009 ATX and it downloads updates (successful). Then it tells me CCHSFS Tax Prep software has stopped working. I can either close the program or check online for a solution (which doesn't find one). Here are the Problem details (if that means anything): Problem signature: Problem Event Name: APPCRASH Application Name: Tax2009.exe Application Version: 2009.7.0.12 Application Timestamp: 4cbf1767 Fault Module Name: TitleBar.dll Fault Module Version: 0.0.0.0 Fault Module Timestamp: 4a812aba Exception Code: c0000005 Exception Offset: 0000185c OS Version: 6.1.7601.2.1.0.768.3 Locale ID: 1033 Additional Information 1: ff70 Additional Information 2: ff70e1f43ca0336434566405e81069e7 Additional Information 3: d3e0 Additional Information 4: d3e0925157d20b8c1d9558dbbba44ad9 Read our privacy statement online: http://go.microsoft.com/fwlink/?linkid=104288&clcid=0x0409 If the online privacy statement is not available, please read our privacy statement offline: C:\windows\system32\en-US\erofflps.txt I wouldn't think installing a monitor should cause problems for ATX. But I did install 3 programs with it: multiScreen MagicTune Premium Samsung_MonSetup I also noticed in the Programs list that Microsoft Visual C++ 2008 Redistributable x86 9.0.21022 got installed. I don't know what installed that (scary). I don't remember doing a Windows update yesterday, but I might have. Perhaps ATX installed it with its updates? Is anyone familiar with any conflicts with these programs? Before I start uninstalling programs I might need for the monitor, I just wanted to check what ATX might have issues with. 2010 TRX (TaxWorks) is still working. I just checked and none of the 2004 - 2009 ATX programs are working. But these programs are: 1998 - 2003 ATX all open (I haven't tested if there are other problems, but at least they open.) 2000 Excel & Word Firefox 4.0 Thunderbird 3.1.9 I'm now thinking Microsoft Visual C++ might be the problem. Any advise before I just start deleting programs I might need? If I go back to a restore point, could I lose any tax data from TaxWorks (yes, I have a backup)? Thanks

I know it's rare, but he might just be a good saver. Or, even more rare, he may have inherited some money.

I've also included seller paid points. That's how I learned it. (But, I don't have any cites for that off the top of my head.)

I have had the occasional case where one spouse comes in & other spouse has already filed MFS. In those cases I file MFS with just that person's info. I, too, am in a community property state. I know you are supposed to split everything 50 /50, but if you don't have (and can't get) the info and the other has already filed, it's about the only option left. It's not like you have the option of not filing. You then have to paper file. I've done this 2 or 3 times over the last 13 years and not heard back from IRS. The only difference is that I've always been able to show the spouse's name & SSN, so you probably have a stronger case. Good luck.

Client owned shares of Burlington Northern Santa Fe. In Feb 2010 it was bought by Berkshire Hathaway. She got money + shares of Berkshire B. I am having a hard time finding the details of this transaction. Was it a sale and purchase (i.e. taxable sale) or exchange (non-taxable)? Proceeds are shown on the 1099B (but no basis info). Brokerage is reporting it as a sale, but some of what I'm finding on-line indicates it was a tax free exchange (except for the cash portion). I've tried looking at the BNI site & the Berkshire site and cannot find any details. If non-taxable exchange, does anyone have a link to the basis conversion calculations? Has anyone found anything on this? Client can't find documents sent with merger info. Thanks! EDIT -- Oh, Never mind. I found it. My link I swear I looked on this site before & couldn't find it.

Yeah, I started to add that comment, too. But IRS doesn't always agree with "logic" and / or "right." Although, I do sometimes tell my clients that the IRS does follow a certain logic (all their own).

Maybe she didn't meet the 5 year holding period? Or, maybe they got it wrong? Why did I get a code 4G for a death benefit rolled over to a Roth? I would think the G should have been a 2. (I haven't yet checked to see if the software will let me put the full amount in the taxable box. -- I guess I'd better call & get it re-issued.)

It's my understanding that the origination fee is included in points when it is based on a percentage of the loan. I have frequently seen "loan origination (1%) = $xxx." But your posted HUD-1 doesn't say that. So I can't tell if they used a flat fee or based it on a percentage. I had one this year that just listed $500 for origination fee. In that case I didn't include it.

So, do I have this straight now? IF the county bought an easement only, there is no current tax consequence. Just reduce basis for final sale IF the county actually took title to part of the land & client sells remainder of land & house within 2 years, there is no tax consequence. Just report on Schedule D & use Section 121 exclusion. Do the same for the final sale. IF the county actually took title to part of the land & client does not sell reminder of land & house within 2 years, they have to pay capital gains on the sale (with proration of basis).

But regardless of which section is sold, it was a parcel they owned and lived in (on) for 3 of the past 5 years. So, why would they have to sell the rest in a 2 year period? As long as they don't exceed the $500K cap for the whole sale (not much of an issue in this area).

But if it is an outright sale of a portion of their home, wouldn't the $500K (MFJ) exclusion still apply? The eventual sale of the home & land (if they ever sell) would have to be modified by this sale. In this case, would I need to list it on the Schedule D with the section 121 exclusion or would I leave it off completely as I would if the whole property had been sold? Thanks

And Romper Room taught us to "do be a good bee" -- or something like that.

Thanks.

Well, I won't be able to do a simple ratio. There was a house on it from the beginning & they still live in it. I'll have to find some other way to proportion it out - if it was an outright sale. What should I look for in the documents to determine whether it is a sale or use of easement? Thanks

I always enjoy it when a question is answered before I ask it. Or, when like this, it makes me realize I should ask a question.

Thanks KC. I knew (courtesy of this board) there were special treatments for easements. I just didn't think this would qualify. Glad I asked & thanks for the answer! And thanks for fixing my typing.

Just to make sure I'm not missing something. New client owns 3 acres of land where they live. County purchased 0.5 acre to widen roadway. This sounds like an outright sale to me (I have not yet seen her documents). So I should just get original purchase price and figure out some kind of proration to determine basis, right? I know I've read here about decreasing basis when payments are received for easements. But I don't think that applies here. If county paid her & that land is now a road, there is no way the client still owns this in any way (OK, maybe a tiny percentage as a taxpayer of the county, but that's a different issue). That's why I think I should show a sale on Sch D rather than just reducing the basis. Sound right? . I'm ready for 4/19.)

Yes. I've done several of these.

Thanks so much. I've never had reason to not trust these clients before. Just reading too many horror stories about EIC fraud put this doubt in my head! They'll be here any minute now. I feel more confident!

I just wish I could have given you better news. I know several states are like MO that just say amounts over X are reported. I couldn't believe almost all your states were not as generous. I'm glad I could help answer your question. I always feel like I ask way more questions than I answer. Good luck. (again)